Role of NBC in Payment Systems
Payment systems are crucial to the financial infrastructure of the country. It plays a critical role in contributing to the economic development of the nation by providing the efficient payment facilities the exchange of money for goods, services, and financial assets. It also provides a safe and efficient means through which authorities can manage systemic risk and central banks can implement monetary policy.

The National Bank of Cambodia performs three main roles to ensure a safe and efficient operation of the payment system:

• Provision of Banking Services
The NBC provides banking services to the government and commercial banks by offering accounts on behalf of state agencies and instrumentalities of the central government, notably the national treasury. The NBC assists the debt management of the Royal Government or public entities by conducting securities operations, including advising on the timing of securities issues. In addition to this, the NBC purchases, sales and repurchases the government securities. The NBC also promotes interbank services such as risk centralization and unpaid loans, as well as establishes a clearing center for the prompt and efficient clearing and settlement of interbank payments.

• Operation of National Payment Systems
The NBC operates the payment system which handles fund transfers regarding transactions among banking and financial institutions or transactions between the NBC and banking and financial institutions, final settlement of net obligations cleared through retail payment systems, and disbursement and receipt of Treasury funds. Access to the NBC account is restricted to government and financial institutions only. Individual customers and private non-financial companies are not permitted to access the settlement facilities. Except for requirements of government and financial institutions, there are no other explicit requirements for direct access to the NBC account, i.e. minimum asset or payment volume restrictions.

Any licensed commercial bank is required to open three types of accounts at the NBC; current account, reserve requirement account and capital guarantee account. Any transactions such as deposits and withdrawals are made through the current account. In principle, interest is not paid on the current account balances. Settlement account is another requirement for any bank which is a member of the National Clearing House. The NBC extends overdraft facilities to bank participants to cover temporary shortages of settlement funds.

• Oversight and supervision of Payment Systems
The NBC has a statutory responsibility for payment system oversight and supervision. For efficient and safe payment systems, the NBC can enact regulations (Prakas), set out requirements for payment service providers and license or register the institutions based on the requirements.

Working on the development of the payment system, the NBC also cooperates with international development partners and local stakeholders, in particular the banking sector represented by the Association of Banks in Cambodia (ABC) and in order to facilitate the communication with the NBC. The ABC also established a payment sub-committee responsible for work related to the areas of policy, management, and operations.